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Data Center Transformation Market Size & Growth Insights: Emerging Trends and Future Projections 2025-2034
Data Center Transformation Market Size
What Is the Data Center Transformation Market Size and Projected Growth Rate?
In recent years, the market size for data center transformation has seen substantial growth. It is projected to expand from $12.05 billion in 2024 to $13.09 billion in 2025, with a compound annual growth rate (CAGR) of 8.6%. The historical growth can be traced back to the surge in data center traffic, an escalating demand for cloud computing services, utilization of digital enterprise solutions such as ERP and analytics, investments in advanced data center technology, and an increasing demand for data center modernization.
In the forthcoming years, the data center transformation market size is set to experience a fast expansion. It is anticipated to reach $19.44 billion in 2029, with a compound annual growth rate (CAGR) of 10.4%. Factors contributing to this growth during the forecast period include the implementation of 5G technology, the rising necessity for software-optimized data centers, the burgeoning of cloud-based services and data centers, positive government policies for data center enhancements, and an upsurge in the use of technologies in data centers. Throughout the forecast period, observed trends include the uptake of sophisticated solutions for data center transformation, a focus on sustainability via energy-efficient solutions, launch of revolutionary products, and assertive marketing tactics for better brand recognition.
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What Are the Major Segments in the Data Center Transformation Market?
The data center transformation market covered in this report is segmented -
1) By Service: Consolidation Services, Optimization Services, Automation Services, Infrastructure Management Services
2) By Level Of Data Center: Tier 1, Tier 2, Tier 3, Tier 4
3) By End-User: Information Technology And telecommunications, Banking Financial Services And Insurance (BFSI), Healthcare, Energy, Manufacturing, Government, Other End-Users
Subsegments:
1) By Consolidation Services: Server Consolidation, Storage Consolidation, Network Consolidation, Data Center Migration And Integration
2) By Optimization Services: Energy Efficiency Optimization, Cost Optimization, Performance Optimization, Resource Utilization Optimization
3) By Automation Services: Cloud Automation, Network Automation, Infrastructure Automation, Security Automation
4) By Infrastructure Management Services: Data Center Monitoring And Management, Virtualization Management, Disaster Recovery And Backup Management, Compliance And Risk Management
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What Are The Driving Data Center Transformation Market Evolution?
The growth of the data center transformation market is anticipated to be propelled by an upsurge in the volume and velocity of generated data. The generation of data involves the production or creation of data from various activities and sources. This increase is a result of the extensive use of digital technologies such as IoT devices, smartphones, social media platforms, and online transactions, which constantly generate large amounts of data from a variety of sources and interactions. The necessary infrastructure and tools for efficiently handling and processing the growing data volume are provided by data center transformation. For example, in a December 2022 report by Sky's The Limit (STL), a US firm specializing in optical and digital solutions, the amount of global data created in 2021 was projected to be about 79 zettabytes. It is forecasted that by 2025, data generation will reach around 150 zettabytes, which is twice the projected amount for 2022. Thus, the acceleration and volume increase in data generation are driving the evolution of the data center transformation market.
Which Firms Dominate The Data Center Transformation Market Segments?
Major companies operating in the data center transformation market are Microsoft Corporation, NTT Communications Corporation, Dell Inc., Amazon Web Services (AWS), plc, International Business Machines Corporation, Cisco Systems Inc., Schneider Electric SE, ABB Ltd., Google Cloud, Eaton Corporation plc, Cognizant, Emerson Network Power Inc., Hindustan Computers Limited Technologies, Atos, Wipro Ltd., Equinix Inc., NetApp Inc., Digital Realty, Citrix Systems Inc., HDR Inc., Cloud Software Group, Gensler, CyrusOne, Corgan, Acronis
What Trends Are Expected to Dominate the Data Center Transformation Market in the Next 5 Years?
Leading firms in the data center transformation sector are adopting inventive techniques, like data center suites, to boost their earnings in the industry. Data center suites are unique, self-contained areas within a data center facility, designed to cater to the particular requirements of a client or tenant. For instance, Honeywell International Inc., an American technology firm, rolled out a new set of solutions titled the Honeywell data center suite in September 2023. This suite is crafted to help data center operators and proprietors enhance uptime, labor productivity, the health of crucial assets, and overhead costs while providing improved understanding of sustainability key performance indicators (KPIs). Further, this suite facilitates proactive surveillance, management of vital infrastructure, upkeep strategies based on condition, and all-inclusive analytics to amplify efficiency and minimize expenses in data center functioning.
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Which Is The Largest Region In The Data Center Transformation Market?
North America was the largest region in the data center transformation market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the data center transformation market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
Frequently Asked Questions:
1. What Is the Market Size and Growth Rate of the Data Center Transformation Market?
2. What is the CAGR expected in the Data Center Transformation Market?
3. What Are the Key Innovations Transforming the Data Center Transformation Industry?
4. Which Region Is Leading the Data Center Transformation Market?
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